BRICS?... Uh oh?

[littlebadboy]

Any economists here?

https://youtube.com/shorts/QOEHo_SrNFU

Thoughts?

[Partscaster]

Its been around for a while.

[LightWingStudios]

4 out of 5 are essentially economic basket cases with the last one probably headed there.

[golem]

BRICS stands for Brazil, Russia, India, China, South Africa? Are these countries most governments would want to keep your reserves in?

It makes sense that the Euro is the next biggest reserve currency. Is it surprising that, given the amount of trade the world does with China, that some of that currency is kept in their currency?

On a long enough time frame, it's irrational to think the USD will always be the world's reserve currency.

That said, I see a group of people trying to sell things they stand to make money off of either directly or indirectly my using BRICS to spread fear.

[nomadh]

It's an interesting and could be potentially huge question. It seems China and Russia both control huge amounts of natural resources and unlike us are both willing to use them and are or can nationalize them. Only one of those being that old-school money, gold. There are questions as to how much the US has.
The US went off the gold standard in 71 basically making our money worthless in a way. We made a deft move back then and made a deal that we would back Saudi Arabia and they would only sell oil in US dollars. That made our money both valuable and at the same time we could print like maniacs and barely feel the inflation as so many of those inflated $ were "over there" buying oil.
Well recently we weponized our creaky old $ when we tried to sanction Russia and its ruble. At the same time it reminded China how vulnerable they could be as both US political parties seem to suddenly realize China is not our bff. At the same time opec has started accepting other payments. The $ has been playing hot potato for 50 years and no one wants to be holding it when the game stops.
What happens here when all these countries want to spend their $ before they become worthless?
Add in that the US is massively divided with huge swings in policies. Currently is quite obvious we are not stable or even a serous country.
It's all so much more complex than this and please add on but bottom line is remember all those guitars we were getting for what felt like free? Well they weren't. Get ready to pay for them. Them and everything else we've ever bought at Walmart and home depot.
Maybe we all need to consult with @sabasgr68 on what to expect and how to survive a Venezuela type breakdown.

[sabasgr68]

It's an interesting and could be potentially huge question. It seems China and Russia both control huge amounts of natural resources and unlike us are both willing to use them and are or can nationalize them. Only one of those being that old-school money, gold. There are questions as to how much the US has.
The US went off the gold standard in 71 basically making our money worthless in a way. We made a deft move back then and made a deal that we would back Saudi Arabia and they would only sell oil in US dollars. That made our money both valuable and at the same time we could print like maniacs and barely feel the inflation as so many of those inflated $ were "over there" buying oil.
Well recently we weponized our creaky old $ when we tried to sanction Russia and its ruble. At the same time it reminded China how vulnerable they could be as both US political parties seem to suddenly realize China is not our bff. At the same time opec has started accepting other payments. The $ has been playing hot potato for 50 years and no one wants to be holding it when the game stops.
What happens here when all these countries want to spend their $ before they become worthless?
Add in that the US is massively divided with huge swings in policies. Currently is quite obvious we are not stable or even a serous country.
It's all so much more complex than this and please add on but bottom line is remember all those guitars we were getting for what felt like free? Well they weren't. Get ready to pay for them. Them and everything else we've ever bought at Walmart and home depot.
Maybe we all need to consult with @sabasgr68 on what to expect and how to survive a Venezuela type breakdown.

I´m the least person to consult, I´m afraid LOL.

All I can tell is that US$ has always been king here, still is. If you had dollars, you´re good; the ones who have survived better here are those who had dollars - plenty, I mean - before. Not sure it´ll work there if your economy shakes, of course - irony -. I suppose metals would be a way, or Euro. But again, what do I know? I survived partly because of the help ($) I was given by AGF folks and some relatives in Spain and DR, it added to have a ground in the most difficult years. Now, @nomadh , I´d actually like to know the answer for your question, as the situation - not only here, but in many countries - is fuzzy.

Heavy industry has almost dissapeared here, car manufacturers flew away, our oil industry situation is a known secret everywhere, agriculture and livestock barely making it. Would that be expected to happen in the US at some point? Not sure, and I hope it won´t. Don´t forget that the cause of most that has happened here has a name and surname, so I don´t think that our breakdown can be used as an example to analyze, or not about what has caused it, at least. About the effects, that´s another story, I guess those could be interpolated. Like you said, it´s all much more complex, and we, mere mortals, only get to see a small part of the iceberg.

[littlebadboy]

Thanks for the insight, @nomadh!

I'm not an economist, but to my understanding, currency needs to be backed up with Treasury such as gold, oil, etc. I worry because these countries are rich in resources to back up their currency. Do you guys think America has some hidden valuable resources to back up our dollar?

[tobijohn]

...Do you guys think America has some hidden valuable resources to back up our dollar?

Well, as far as reserve currencies go, they're graded on a curve and the Dollar is still in first place by a wide margin. As shaky as it might seem here, it's even shakier everywhere else. Currently, the BRICS currencies account for probably less than 5% of reserve holdings:

https://www.imf.org/en/Blogs/Articles/2 ... currencies

[nomadh]

...Do you guys think America has some hidden valuable resources to back up our dollar?

Well, as far as reserve currencies go, they're graded on a curve and the Dollar is still in first place by a wide margin. As shaky as it might seem here, it's even shakier everywhere else. Currently, the BRICS currencies account for probably less than 5% of reserve holdings:

https://www.imf.org/en/Blogs/Articles/2 ... currencies

Yes it seems the $ is still the least dirty shirt in the hamper. The ho in the whorehouse withe the most teeth and the least STDs? The breast cancer when everyone else has pancriatic cancer? Heard another recently.
Analogies abound.

[nomadh]

@sabasgr68 been meaning to ask this. We have reports that people in your country have been using gold dust shavings and some silver for payments I many situations. Are you seeing much of that?

[tobijohn]

Yes it seems the $ is still the least dirty shirt in the hamper. The ho in the whorehouse withe the most teeth and the least STDs? The breast cancer when everyone else has pancriatic cancer? Heard another recently.
Analogies abound.

Or, as Jack Nicholson described himself to Faye Dunaway in the movie Chinatown when she asked about finding a competent private investigator:

[nomadh]

Thanks for the insight, @nomadh!

I'm not an economist, but to my understanding, currency needs to be backed up with Treasury such as gold, oil, etc. I worry because these countries are rich in resources to back up their currency. Do you guys think America has some hidden valuable resources to back up our dollar?

Last I heard we may have more oil reserves than some opec countries. We were a net exporter until biden. We are fairly rich in resources but we do seem to be lacking in some of the newer hot products like lithium. Maybe some of that is environmental limits

[sabasgr68]

@sabasgr68 been meaning to ask this. We have reports that people in your country have been using gold dust shavings and some silver for payments I many situations. Are you seeing much of that?

Haven´t heard anything, but I wouldn´t be surprised if it happened in the south, where gold extraction happens "clandestinely exposed" - everyone knows about it-. Mafias everywhere.

[tobijohn]

This is, by far, the best explanation of the whole situation. If you're really interested, take the time to watch it:

[andrewsrea]

I've been following it. It is basically countries who want to end their dependency on the US dollar. IMHO, it is a long way off from toppling the dollar. However, the US has to learn to compete again, as the two biggest populated countries in the world combined may be the biggest global economy in the next decade or two. The US really as to focus on GDP instead of ESG, or risk this.

[Mossman]

It's been said that the real commodity of value that has backed up the US dollar since we went off the gold standard (which technically happened in 1933 under FDR) has been the US military (and the CIA). As we should all know by now, the invasion of Iraq and the subsequent execution of Saddam Hussein had nothing to do with "weapons of mass destruction". It was because Iraq had plans to trade in currencies other than the US dollar for oil (particularly with Russia). The US has conducted much quieter "invasions" of numerous other countries, where the petrodollar was not at issue, simply utilizing the threat of military engagement/occupation. But those operations never make it to the media, or the public consciousness. First, they send in the "economic hitmen", to shake down the leadership into allowing contractors to come in and privatize lucrative and vital infrastructural assets. Manufacturing, railroads, utilities, food production... Even their educational systems. If they won't play ball, then they send in the CIA to engineer a coup, or foment civil unrest, or make cars and/or airplanes mysteriously explode. In the case of Iraq, Hussein was a hardened target whom they couldn't reach, so the troops were sent in under the guise of playing the world's protector from WMDs.

"Confessions of an Economic Hitman" by John Perkins is a very enlightening read. It's not about the Iraq war, but it illustrates how the US wields power through dirty deals and intimidation.

[tobijohn]

It's been said that the real commodity of value that has backed up the US dollar since we went off the gold standard (which technically happened in 1933 under FDR) has been the US military (and the CIA). As we should all know by now, the invasion of Iraq and the subsequent execution of Saddam Hussein had nothing to do with "weapons of mass destruction". It was because Iraq had plans to trade in currencies other than the US dollar for oil (particularly with Russia). The US has conducted much quieter "invasions" of numerous other countries, where the petrodollar was not at issue, simply utilizing the threat of military engagement/occupation. But those operations never make it to the media, or the public consciousness. First, they send in the "economic hitmen", to shake down the leadership into allowing contractors to come in and privatize lucrative and vital infrastructural assets. Manufacturing, railroads, utilities, food production... Even their educational systems. If they won't play ball, then they send in the CIA to engineer a coup, or foment civil unrest, or make cars and/or airplanes mysteriously explode. In the case of Iraq, Hussein was a hardened target whom they couldn't reach, so the troops were sent in under the guise of playing the world's protector from WMDs.

"Confessions of an Economic Hitman" by John Perkins is a very enlightening read. It's not about the Iraq war, but it illustrates how the US wields power through dirty deals and intimidation.

Possibly accurate or not, your comment has very little to do with the topic at hand and very much to do with your political world view. You're entitled to believe whatever you want, but you know the forum's position on politics.

I'll leave the thread open for now, but everyone needs to stay out of the weeds...

[Mossman]

Possibly accurate or not, your comment has very little to do with the topic at hand and very much to do with your political world view. You're entitled to believe whatever you want, but you know the forum's position on politics.

I'll leave the thread open for now, but everyone needs to stay out of the weeds...

Sorry... I wasn't sure if my post would be perceived as political. I mean, it's not partisan, and I thought it was at least tangentially related. Didn't mean to cause any trouble.

[littlebadboy]

New news about BRICS... I worry. Apparently, Saudi Arabia, UAE, and Mexico among others are joining.

https://watcher.guru/news/30-countries- ... s-currency

[bc rich]

Thanks for the insight, @nomadh!

I'm not an economist, but to my understanding, currency needs to be backed up with Treasury such as gold, oil, etc. I worry because these countries are rich in resources to back up their currency. Do you guys think America has some hidden valuable resources to back up our dollar?

Last I heard we may have more oil reserves than some opec countries. We were a net exporter until biden. We are fairly rich in resources but we do seem to be lacking in some of the newer hot products like lithium. Maybe some of that is environmental limits

To back the 32 trillion dept fully with gold would only need 500 000 tons of it . With gold at $2000 oz and us ton = 2000 lbs

[tobijohn]

To back the 32 trillion dept fully with gold would only need 500 000 tons of it . With gold at $2000 oz and us ton = 2000 lbs

That would be tough to pull off unless we had a serious alchemist connection. From The Atlantic:

" U.S. Geological Survey estimates that, of the world's known gold, roughly 63,000 tons are still in the ground, compared with roughly 206,000 tons that have already been mined. And the world's unmined gold is generally unmined only because it's deeper underground and thus less accessible." Jan 30, 2022